Loss of TCDD – I

Ministry of Development targets to lessen the loss of TCDD to “sustainable” level in the following 3 years.

According to this 3-years-plan, the assignments for social projects and public benefits on TCDD will be minimized, and will be paid by government. The subsidiaries of TCDD; Tudemsas, Tulomsas and Tuvasas will be restructured based on market needs.

Let’s discuss how TCDD made this loss in detail. But first, how much is the loss?

Loss of TCDD was TL 271 mn in 1999, and increased every year by 15% in average and reached to TL 2.27 bn (€ 700 mn) in 2014*.

Loss of TCDD. Graph: Onur Uysal

The subsidies in income statement of TCDD is the amount paid by government for social projects and public benefits. Assignments dropped sharply in 2014, but also the subsidies. Thus, the loss did not increase, but did not decrease much either.

Loss vs Subsidies of TCDD. Graph: Onur Uysal

Restructiring of subsidiaries may slightly change this graph, since loss of them are very small compared with TCDD. Below is the profit/loss amounts of subsidiaries in 2014 (2013 for Tuvasas).

Profit/Loss of TCDD’s Subsidiaries in 2014 (mn TL)

Izban

-29,7

Hyundai Eurotem

2,5

Voesalpine Kardemir

-0,4

Sivas Travers

0

Tulomsaş

3,7

Tuvasas (2013)

-21,4

Tudemsas

1,7

Then where did this big loss come from? Here’s the operating losses of TCDD in 2014 in service detail:

Profit/Loss of TCDD in 2014 (mn TL)

Income

Expense

P/L

Suburban (Marmaray and Ankara)

70

129

-59

Mainline Passenger

194

1.069

-875

Freight

642

2.188

-1.545

Ports

316

196

120

Van Lake

6

36

-31

Sum

1.228

3.617

-2.389

59% of the operating loss comes from freight and 33% is from mainline passenger services. The only unit with profit is ports, where contribution is decreasing everyday due to privatization (the privatization income is not included).